FDIC-Insured Deposit Sweep Program Disclosure

[Pages:14]FDIC-Insured Deposit Sweep Program Disclosure

For Fidelity Individual Retirement Accounts (IRAs) and Fidelity Health Savings Accounts (HSAs)

Summary

This document provides important information about the FDIC-Insured Deposit Sweep Program offered in connection with certain Fidelity IRAs (including Traditional, Rollover, and SEP IRAs), Fidelity Roth IRAs, and Fidelity SIMPLE IRAs (each an Individual Retirement Account, or IRA) and/or the Fidelity Health Savings Account (HSA) (each an "Account"). It is incorporated into and forms a part of the Customer Agreement governing your Account. If you have questions about an IRA, you can call a Fidelity Representative at 800-544-6666. For questions about an HSA, please call 800-544-3716.

How the Program Works

IRAs and HSAs utilize a core account. In accordance with your instructions and pursuant to these disclosures, the uninvested balances in your core account will be held in a position called the FDIC-Insured Deposit Sweep (the "Sweep"). Cash contributed to or received in your Account is held in the core account (the "Cash Balance"). The Cash Balance (if any) on each business day is composed of the prior day's Evening Bank Sweep and the Morning Bank Sweep for such business day (each as defined in the Customer Agreement governing your Account). On each business day (not including bank holidays or days on which the New York Stock Exchange is closed, such as Good Friday), the Cash Balance is automatically "swept into" an FDIC-insured interest-bearing account (the "Program Deposit Account") at one or more participating banks (each a "Program Bank"). A hierarchical list of Program Banks (the "Program Bank List") will be assigned to your Account. The Program Bank List can change over time. You will be provided advance notice of any such change, as further detailed below. The Program Bank List assigned to your Account is available on . To access the Program Bank List, you must log in to your Account, navigate to the "Positions" page, and then click the "FDIC-Insured Deposit Sweep" link. If you have questions about a particular Program Bank's status, or need further information about the Program Bank List assigned to your Account, please contact a Fidelity Representative. The first bank on your Program Bank List will be designated as your "Primary Core Bank." Cash Balances up to the Maximum Deposit Limit (as further defined below) will be swept into your Primary Core Bank. The additional Program Banks, if any, on your Program Bank List will generally be available to accept excess Cash Balances in the event that you reach the Maximum Deposit Limit at your Primary Core Bank, provided, however, that if you have Program Deposits at each available Program Bank on your Program Bank List in an amount equal to the Maximum Deposit Limit, any remaining Cash Balances will be swept into your Primary Core Bank. Once your Cash Balance has been swept into a Program Deposit Account, it becomes eligible for FDIC insurance and is referred to as your "Program Deposit." Beginning with your Primary Core Bank, your Program Deposit is also automatically "swept out of" a Program Deposit Account as necessary to satisfy debits in your Account. Debits in your Account associated with certain actual or anticipated transactions to generate a debit in your Account during the business day will be settled using proceeds from the withdrawal of Program Deposits that are swept out on such business day. Other debits will be settled using proceeds from the withdrawal of Program Deposits that are swept out on the next business day. In this document, the sweep process between your Account and the Program Deposit Account is referred to as the "Program." In the absence of an available Program Bank, any or all of the Cash Balances in your Account will be placed into another available core position. Your continued use of your Account after receiving notice of a change that affects your Account will constitute your consent to such change.

The Program is available to most IRA and HSA accounts. The Program is not available to inherited IRAs, IRAs, and HSAs that utilize Fidelity's Portfolio Advisory Services, or any IRA or HSA where the account owner has established a relationship with an independent third-party investment adviser that utilizes Fidelity or its affiliates for clearing and custody services and technology support. There are also limitations on the Program if your IRA was established by your employer in accordance with the terms of your workplace savings plan.

Except as otherwise described in the Fidelity Brokerage Retirement Account Customer Agreement, existing IRA account owners may generally switch the core position between the Sweep and a Fidelity money market mutual fund without restriction. Except as otherwise described in the Fidelity Health Savings Account Customer Agreement, existing HSA account owners may generally switch the core position between the Sweep and a Fidelity money market mutual fund without restriction. Existing account owners seeking more information or wishing to make a change can do so by calling a Fidelity Representative.

If you open a new Account, you will receive your initial Program Bank List in connection with the account-opening process. If you have an existing Account that utilizes an alternative core position and you elect to switch to the Sweep, you will receive your Program Bank List in the notice confirming your election. If there are subsequent changes to the Program Bank List assigned to your Account, you will receive advance notice of such changes. Notice will be provided to you in writing or through electronic communications, including through notifications on Account statements. For more information about the method used to generate your Account's Program Bank List, and changes thereto, please refer to the "Details" section of this document.

Continued use of your Account and/or the Program after receipt of the initial Program Bank List assigned to your Account or notice of subsequent changes to such list will constitute your consent to such list. The Program Bank List assigned to your Account is available on by logging in to your Account. If you have questions about a particular Program Bank's status, or need further information about the Program Bank List assigned to your Account, please contact a Fidelity Representative.

Program Deposit Accounts are established on behalf of you and other Fidelity customers who participate in the Program. Although Fidelity will sweep your Cash Balance into a Program Deposit Account with a Program Bank, you cannot make withdrawals from the Program Deposit Account, even if you contact the Program Bank. Your Cash Balance is only available through your Account. Please call a Fidelity Representative with any questions about accessing your Cash Balance.

You will be notified in advance, whenever possible, of a material change that affects your Account or the Program. Notice will be provided to you in writing or through electronic communications, including through notifications on Account statements. Your continued use of your Account and/or the Program after receipt of notice will constitute your consent to such change. However, in extraordinary circumstances including, but not limited to, situations where a Program Bank is unavailable or unwilling to take additional Program Deposits, a Program Bank's participation in the Program is terminated, or a Program Bank's ongoing viability may be in question, you direct Fidelity, without providing advance notice to you, to make an intraday change to the Program Bank List that will affect the Program Banks assigned to receive Program Deposits, to limit the amount of your Cash Balance that is swept into a Program Deposit Account, or to move your Cash Balance to another Program Bank. In the absence of an available Program Bank, any or all of the Cash Balances in your Account will be placed into another available core position. Please consult the "Details" section for further important information, as such change may affect Fidelity's compensation and your eligibility for FDIC insurance.

Interest Rates

Each of the following constitutes a "Set Point":

? The third business day immediately following: (i) any scheduled meeting of the Federal Open Market Committee ("FOMC"), or (ii) the date of any published FOMC policy statement not resulting from a scheduled meeting of the FOMC;

? The first business day of each month; and

? The fifteenth day of each month, or in the event the fifteenth day is not a business day, the next business day immediately following the fifteenth day of each month.

The interest rate paid on your Program Deposit will be set and effective on each Set Point. On each Set Point, the current rates and annual percentage yields (APYs) for Program Deposits will be available at /IRACoreRates for IRA rates or HSACoreRates for HSA rates or by calling a Fidelity Representative. The foregoing notwithstanding, there is no requirement that the interest rate change on a given Set Point (i.e., interest rates may remain constant over the course of multiple Set Points). Your continued use of your Account and/or the Program after publication of the rates as described above will constitute your consent to the rate. The interest rate may change between Set Points only if the change results in a higher interest rate being paid to all customers who maintain the same type of Account (e.g., all IRAs), in which case revised rates will be published as described above.

A calendar of scheduled FOMC meetings can be found at the website of the Board of Governors of the Federal Reserve [].

Interest rates may vary depending on the type of Account (IRA or HSA). Program Banks may participate in the Program in connection with both IRAs and HSAs. Account owners maintaining both an IRA and an HSA may have

Program Deposits at the same Program Bank as a result of utilizing the Program in connection with both Accounts and may be paid different interest rates on the Accounts by the same bank.

Fidelity offers similar programs to account owners who maintain other types of accounts ("Other Accounts"). While the same Program Bank may participate in the Program as well as the program for these Other Accounts, the interest rate paid by a Program Bank in connection with the Program may be different from that paid by the same Program Bank in connection with the program offered to account owners who maintain Other Accounts with Fidelity.

The rate of interest may change at any time and will vary over time as provided herein. Over any given period, the interest rates on your Program Deposits may be lower than the rate of return on similar non-FDIC-insured investments or deposit accounts offered outside of the Program, including deposit accounts held directly with a Program Bank.

To compare current rates of return between the Sweep and non-FDIC-insured options available at Fidelity, please visit IRACoreRates for IRA rates or HSACoreRates for HSA rates or call a Fidelity Representative.

Interest accrues daily, is compounded monthly, and will be reflected on your Account statement as of the last business day of each month. Program Deposits begin earning interest on the day they are received by the Bank and stop accruing interest on the day they are withdrawn. Additional information regarding the calculation and payment of interest on your Program Deposit can be found in the "Details" section or by calling a Fidelity Representative.

FDIC Insurance Coverage/SIPC Protection

Your Program Deposit, together with any non-Program deposits you may have at the same Program Bank, which include deposits arising in connection with similar programs offered to account owners who maintain Other Accounts with Fidelity, as well as savings and checking accounts, money market deposit accounts, and CDs issued directly to you by the Program Bank, are insured by the FDIC, an independent agency of the U.S. government, up to a standard maximum amount in accordance with the rules of the FDIC. The applicable FDIC insurance limit depends on the ownership capacity in which you hold the Program Deposit, and the relevant limit will be applied to all deposits (including Program Deposits and non-Program deposits) held in the same ownership capacity by you at the same Program Bank. Deposits held in different ownership capacities, as provided in FDIC rules, are insured separately. Single ownership accounts are insured up to $250,000, and each co-owner's share of joint accounts is insured up to $250,000. For retirement accounts such as IRAs, the limit is typically $250,000. HSAs, unless they possess special features, are considered to be held in the same right and capacity as other single ownership accounts of a depositor, and are combined with such other single ownership accounts, for the purpose of applying the $250,000 maximum limit. Special rules apply to insurance of trust deposits. If you have both a Program Deposit and non-Program deposits at the same Program Bank held in the same right and legal capacity as your Program Deposit, you must aggregate all such deposits with your Program Deposit for purposes of determining FDIC coverage. If your total funds on deposit at a Program Bank exceed the applicable FDIC insurance limit, the FDIC will not insure your funds in excess of the limit.

For more information, please refer to the "Details" section of this document, visit , or call 877-ASK-FDIC (877-275-3342).

Fidelity is not responsible for monitoring the amount of your Program Deposit in any Program Bank to determine whether it exceeds the limit of available FDIC insurance. You are responsible for monitoring the total amount of your assets on deposit with each Program Bank (including amounts in other accounts at the Program Bank held in the same right and legal capacity) in order to determine the extent of deposit insurance coverage available to you on those deposits, including your Program Deposit.

Any securities held in your Account (as opposed to the Program Deposit) are investment products and as such (i) are not insured by the FDIC, (ii) carry no bank or government guarantees, and (iii) have associated risks. By investing in securities, you can lose your money, including the principal amount you invested.

Securities held at Fidelity (as well as funds held at Fidelity and not at a Program Bank) are covered by the Securities Investor Protection Corporation (SIPC). SIPC currently protects these funds and securities up to $500,000, including $250,000 for claims for cash. SIPC coverage does not cover fluctuations in the market value of your investments. Your Cash Balance is only eligible for FDIC insurance once it becomes a Program Deposit held by a Program Bank. Your Cash Balance while held by Fidelity and in transit to or from a Program Bank is not FDIC-insured but is

covered by SIPC. For more information regarding FDIC insurance, please consult . For more information regarding SIPC coverage, or to request the SIPC brochure, please consult or call 202-371-8300.

Relationship Between Fidelity and Others

Fidelity receives a fee from each Program Bank in connection with the operation of the Program. This fee is typically based on the average aggregate daily Program Deposits associated with IRAs and/or HSAs on deposit with the Program Bank. The fee paid to Fidelity may vary from Program Bank to Program Bank and will generally increase as the amount on deposit with the Program Bank increases. The fee paid to Fidelity by the same Program Bank in connection with the Program may be different for IRAs and HSAs. The fee paid to Fidelity by such Program Bank may also be different from that paid by the same Program Bank in connection with similar programs offered to account owners who maintain Other Accounts with Fidelity. The fee paid to Fidelity by each Program Bank may vary over time, but will never exceed a maximum annualized rate equivalent to 4% of the total of all IRA and HSA Program Deposits held at that Program Bank. For the provision of certain services in connection with the Program, including technology and accounting services and assistance in compliance with regulatory requirements, Fidelity utilizes a "Program Administrator." The Program Administrator will receive an annual fee from Fidelity equivalent to 0.010% of the aggregate daily balance of all Program Deposits up to a fixed cap. In addition, the Program Administrator will assist Fidelity with identifying new Program Banks to participate in the Program. For such assistance, the Program Administrator will receive a fee from Fidelity that will range from 0.010% to 0.020% of such Program Bank's Deposit Limit. Fidelity may be a customer of the Program Administrator or a Program Bank and may have other financial interactions with the Program Administrator or a Program Bank. Additionally, the Program Administrator may also be a Program Bank, in which case, Fidelity will receive the fee described above. Finally, Fidelity may in the future designate one of its affiliates as the Program Administrator or a Program Bank or both.

Details

"Fidelity," "us," and "we" include Fidelity Brokerage Services LLC (FBS), National Financial Services LLC (NFS), and our affiliates as the context may require. "You" and "account owner" refer to the owner indicated on the account application.

Overview

Under the Program, the Cash Balance in your Account is automatically swept into and out of an interest-bearing Program Deposit Account at one or more Program Banks. The Program is part of Fidelity's IRA or HSA product offering. As described more fully below, you make the decision to utilize the Program when you open your Account with Fidelity or, if you are an existing account owner, when you elect to switch to the Sweep from a Fidelity money market mutual fund. Fidelity does not have, and will not exercise, any authority or control over your IRA or HSA either (i) with respect to the deposit of the Cash Balance in your Account in the Program Deposit Account, (ii) your acceptance of the initial Program Bank List assigned to your Account or any changes thereto, or (iii) otherwise with respect to the Program. By maintaining your Account with Fidelity, you acknowledge and agree that you make the decision to participate in the Program and that neither Fidelity nor any of its affiliates is acting as a fiduciary as defined by the Internal Revenue Code on behalf of your IRA or HSA with respect to any aspect of the Program (or any changes thereto). You have the ability to move your Cash Balance from the Program or otherwise terminate your use of the Program without penalty at any time.

The Sweep should not be viewed as a long-term investment option. If you are interested in a long-term investment option for your Cash Balances, please consider alternatives other than the Sweep that may be better suited for such a purpose.

How the Program Works

Deposits

Each business day (not including bank holidays or days on which the New York Stock Exchange is closed, such as Good Friday), the Cash Balance in your Account will be automatically swept into one or more Program Deposit Accounts established by Fidelity on behalf of you and other Fidelity customers who participate in the Program at the Program Banks. Starting with your Account's Primary Core Bank, Fidelity will sweep Cash Balances to the Program Deposit Account at such Bank until the total amount of your Program Deposit at that Program Bank is equal to the Maximum Deposit Limit. If, after this process is completed, there is a remaining Cash Balance in your Account, Fidelity will sweep those funds into the next available Program Bank on your Account's Program

Bank List (as more fully described below) until the total amount of your Program Deposit at that Program Bank is equal to the Maximum Deposit Limit. This process will repeat itself until either (i) there is no remaining Cash Balance in your Account or (ii) a Cash Balance remains in your Account and you have Program Deposits at each available Program Bank on your Account's Program Bank List in an amount equal to the Maximum Deposit Limit, in which case the remaining Cash Balances will be swept into your Account's Primary Core Bank. Please note that if, as a result of this process, you have Program Deposits in excess of the Maximum Deposit Limit at your Account's Primary Core Bank, it is very likely that some of those funds will not be covered by FDIC insurance.

Maximum Deposit Limit

The Maximum Deposit Limit for IRAs will at all times be equal to 98% of the then-applicable standard maximum deposit insurance amount for an individual retirement account. The Maximum Deposit Limit for HSAs will at all times be equal to 98% of the then-applicable standard maximum deposit insurance amount for a nonretirement single ownership deposit account. For example, if the standard maximum deposit insurance amount is $250,000, then the Maximum Deposit Limit is $245,000.

Withdrawals

If funds are needed to cover a debit in your Account at the end of a business day, the funds will be automatically swept out of the Program Deposit Account(s) back into your Account on the next business day. Notwithstanding the preceding sentence, debits associated with certain actual or anticipated transactions that would otherwise generate a debit in your Account during the business day will instead be settled using proceeds from the withdrawal of Program Deposits that are swept out on such business day. Funds are swept out of the Program Banks in the same order that they are swept in, starting with the Primary Core Bank (up to the amount of your Program Deposit) and then moving to the next available Program Bank on your Account's Program Bank List (as more fully described below) until either the debit is satisfied or the total amount of your Program Deposits have been swept back into your Account. Program Deposits remaining at the Program Bank(s) will not be reallocated as part of this process. As a result, you may have less than the Maximum Deposit Limit in Program Deposits at your Account's Primary Core Bank, but still have Program Deposits equal to the Maximum Deposit Limit at other Program Banks on your Account's Program Bank.

Interest Posting

Program Deposits begin earning interest on the day they are received by the Bank and stop accruing interest on the day they are withdrawn. Each month, your Account statement reflects the interest accrued on Program Deposits at each Program Bank separately. Interest accrues daily, compounds monthly, and posts to the Program Deposit Account on the last business day of each month. After being posted to the Program Deposit Account, interest payments are swept into your Account where they could create a Cash Balance. In the event that there is a Cash Balance, it will be swept into one or more Program Banks in accordance with the deposit methodology described above.

Changes to FDIC Insurance Limits

If the standard maximum deposit insurance amount for an individual retirement account or a nonretirement single ownership deposit account increases or decreases, Fidelity will determine a new Maximum Deposit Limit for IRAs and/or HSAs, as applicable, as of the effective date of the change.

If the standard maximum deposit insurance amount increases and you have Program Deposits at your Account's Primary Core Bank in excess of the new Maximum Deposit Limit, then Fidelity will sweep these funds into the next available Program Bank on your Program Bank List (as more fully described below) until the total amount of your Program Deposits at that Program Bank are equal to the Maximum Deposit Limit. This process will repeat itself until either (i) you no longer have Program Deposits at your Account's Primary Core Bank in excess of the new Maximum Deposit Limit or (ii) you have Program Deposits at each available Program Bank on your Account's Program Bank List in an amount equal to the Maximum Deposit Limit, in which case any excess Program Deposits will remain at your Account's Primary Core Bank. If the standard maximum deposit insurance amount decreases, Fidelity will redistribute all your Program Deposits across all the available Program Banks in your Account's Program Bank List in accordance with the deposit methodology described above. Please note that if you have

Program Deposits in excess of the Maximum Deposit Limit at your Account's Primary Core Bank, it is very likely that some of those funds will not be covered by FDIC insurance.

Evidence of Ownership

No evidence of ownership of the Program Deposit Account, such as a passbook or certificate, will be issued to you. Instead, the Program Deposit Account will be evidenced by (i) a book entry on the account records of each Program Bank showing an omnibus Program Deposit Account as being held in the name of NFS for the benefit of you and other Fidelity customers who participate in the Program, and (ii) a record of your Program Deposit in the Program Deposit Account maintained by NFS.

Program Banks

Fidelity maintains a list of Program Banks for IRAs (the "IRA Master Program Bank List") and a different list of Program Banks for HSAs (the "HSA Master Program Bank List"), but each Master List operates in the same manner. These Master Lists may also differ from the master lists used with Other Accounts. From time to time, a Program Bank may be added to or removed from either the IRA or HSA Master Program Bank List. Removing a Program Bank from either the IRA or HSA Master Program Bank List means that Fidelity has terminated its relationship with such Program Bank and the Program Bank no longer participates in the Program. If a Program Bank is removed from either the IRA or HSA Master Program Bank List, Fidelity will transfer your Program Deposit from that Program Bank into another Program Bank or Program Banks in accordance with the deposit methodology discussed above as if you had opted out of such Program Bank (as more fully described below).

Each Program Bank may accept deposits up to an aggregate deposit limit (the "Deposit Limit"), which generally caps the total amount on deposit at the Program Bank in connection with the Program as well as similar programs offered by Fidelity in connection with Other Accounts. The Deposit Limit is generally set by contract between Fidelity and the Program Bank. Notwithstanding the foregoing, there could be situations where either Fidelity or the Program Bank determine that such Program Bank will not be accepting deposits even though its aggregate deposits are less than the Deposit Limit.

Program Bank Status A status is assigned to each Program Bank. This status, which may change daily, reflects the Program Bank's ability to accept Program Deposits. As a general rule, a Program Bank's ability to accept Program Deposits is unrestricted except when one of the following applies:

Unavailable--A Program Bank that is unable to accept additional Program Deposits. Characterizing a Program Bank as Unavailable will not affect existing Program Deposits at the Program Bank, but new deposits will be prohibited, except in situations where: (i) the Unavailable Program Bank is the only Program Bank on the Master Program Bank List or (ii) the Unavailable Program Bank is the Primary Core Bank and every other Program Bank in the Program Bank List assigned to an Account is unavailable to take deposits because they are also Unavailable, have been Opted Out (as further defined below), or are Pending Activation (as further defined below).

Overflow--A Program Bank that is currently unavailable to serve as a Primary Core Bank. Assigning a Program Bank an Overflow status will not affect existing Program Deposits at the Program Bank, but the Program Bank will be ineligible to serve as a Primary Core Bank except in situations where the Overflow Program Bank is the only Program Bank on the IRA or HSA Master Program Bank List.

Pending Activation--A Program Bank that has been added to the IRA or HSA Master Program Bank List, but is not yet available to receive Program Deposits.

Opted Out--The account owner has elected not to utilize this Program Bank. While the Program Bank will remain on the Account's Program Bank List, the Program Bank is not available to receive Program Deposits. This status applies only to the Account at issue and has no impact on the Program Bank's ability to accept Program Deposits in connection with the broader Program. To opt out of a Program Bank, please call a Fidelity Representative.

Program Bank List

Program Bank Lists for IRAs and HSAs are generated each day based on either the IRA Master Program Bank List or the HSA Master Program Bank List. As a result, the Program Bank Lists for IRAs and HSAs generated on one

day of the week may be different from the lists created for IRAs or HSAs on another day. Because the IRA and HSA Master Program Bank Lists may be different, the Program Bank Lists for IRAs and HSAs generated on the same day may also differ.

Your Account will be assigned a Program Bank List. The hierarchy of the Program Banks on your Account's Program Bank List reflects the order in which these Program Banks will be utilized in connection with your Account. The first bank on your Account's Program Bank List will be designated as your Account's Primary Core Bank. As discussed below, Fidelity reserves the right to change your Program Bank List upon advance notice. Continued use of your Account and/or the Program after assignment of your initial Program Bank List or after you receive notice of a change to your Program Bank List will constitute your consent to such list.

New Accounts

New account owners will have the option to use the Sweep as specified in the Customer Agreement governing your Account. However, Fidelity reserves the right to suspend Program availability for new IRAs and HSAs for any reason. If this occurs, you will have the option to use another available core position.

The initial Program Bank List assigned to your Account will be determined based on the day your Account is established, and all accounts established that day will be assigned the same Program Bank List. The Program Bank List will be comprised of some or all of the Program Banks on the IRA or HSA Master Program Bank List and will be automatically revised for changes to the applicable Master Program Bank List as discussed above.

If at any time, either the IRA or HSA Master Program Bank List contains only a single Program Bank, the same Program Bank List will be assigned to all Accounts. Because that Program Bank List will consist of only a single Program Bank, that Program Bank will also be the Primary Core Bank. Please note that if this occurred and, as a result, you have Program Deposits in excess of the Maximum Deposit Limit at your Primary Core Bank, it is very likely that some of those funds will not be covered by FDIC insurance.

You will receive a New Account Profile that includes the Program Bank List assigned to your Account. Continued use of your Account and/or the Program after receipt of the initial Program Bank List assigned to your Account will constitute your consent to such list. You will generally not be able to modify the Program Bank List assigned to your Account or select a different Program Bank List during the account-opening process. However, once your Account is established, except as otherwise described in the Fidelity Brokerage Retirement Account Customer Agreement or the Fidelity Health Savings Account Customer Agreement, you will have the ability to modify the Program Bank List assigned to your Account by opting out of one or more of the Program Banks on your Program Bank List. You may also select a different Program Bank List if one is available. To discuss this possibility, contact a Fidelity Representative.

Switching an Existing Account to the Sweep

Except as otherwise described in the Fidelity Brokerage Retirement Account Customer Agreement, existing IRA account owners may generally switch the core position between the Sweep and a Fidelity money market mutual fund without restriction. Except as otherwise described in the Fidelity Health Savings Account Customer Agreement, existing HSA account owners may generally switch the core position between a Sweep and a Fidelity money market mutual fund without restriction. Existing account owners seeking more information or wishing to make a change can do so by calling a Fidelity Representative.

Except as otherwise described in the Fidelity Brokerage Retirement Account Customer Agreement or the Fidelity Health Savings Account Customer Agreement, if you elect to change your existing core account option to utilize the Sweep, you may select either the default Program Bank List assigned to new accounts established on that day or you may select another Program Bank List if one is available.

You will also receive a Revised Account Profile that includes the Program Bank List assigned to your Account. Continued use of your Account and/or the Program after receipt of the Program Bank List assigned to your Account will constitute your consent to such list. At the time you elect to change the option for your core account to the Sweep, you will not be able to modify the Program Bank List assigned to your Account or select a different Program Bank List. However, once the change in your core account is effective, except as otherwise described in the Fidelity Brokerage Retirement Account Customer Agreement or the Fidelity Health Savings Account Customer Agreement, you will have the ability to modify the Program Bank List assigned to your Account by opting out of one or more of the Program Banks on your Program Bank List. You may also select a different Program Bank List if one is available. To discuss this possibility, contact a Fidelity Representative.

Existing Accounts Utilizing the Sweep

The Program Bank List assigned to your Account is available on . To access the Program Bank List, you must log in to your Account, navigate to the "Positions" page, and then click the "FDIC-Insured Deposit Sweep" link. If you have questions about a particular Program Bank's status, or need further information about the Program Bank List assigned to your Account, please contact a Fidelity Representative.

Changes to Program Bank Lists

Customer-Initiated Changes

Once your Account has been established, except as otherwise described in the Fidelity Brokerage Retirement Account Customer Agreement or the Fidelity Health Savings Account Customer Agreement, you can modify the Program Bank List assigned to your Account by calling Fidelity and "opting out" of one or more Program Banks on the Program Bank List, provided, however, that you have at least one Program Bank in your Program Bank List in order to utilize the Program. By opting out of a Program Bank, you make the Program Bank inactive and ineligible or unavailable to receive Program Deposits from your Account. A Program Bank you have opted out of will still appear on the Program Bank List assigned to your Account with a designation that indicates its status. Your direction to opt out is revocable. You can call Fidelity at any time and opt back into a Program Bank, provided that the Program Bank is still participating in the Program and available.

You can call Fidelity at any time to request a different Program Bank List, if one is available. If you elect to utilize a different Program Bank List, and you previously opted out of one or more Program Banks, those opt out elections will carry over to your Account's new Program Bank List, provided, however, that because you may not opt out of the Primary Core Bank, if the Primary Core Bank on this new Program Bank List is one that you previously opted out of and you wish to maintain that election, you must utilize a different Program Bank List with a different Primary Core Bank.

If you opt out of one or more Program Banks and you currently have Program Deposits with these Program Banks, those Program Deposits will be treated as if they were a Cash Balance in your Account and reallocated to the remaining active Program Banks on your Account's Program Bank List in accordance with the Deposit methodology described above. Likewise, if you elect to use a different Program Bank List, all your Program Deposits will be treated as if they were a Cash Balance in your Account and reallocated to the Program Banks on this new Program Bank List in accordance with the Deposit methodology described above.

Addition and Removal of Program Banks

From time to time, a Program Bank may be added to or removed from a Program Bank List. New Program Banks will be added to the end of a Program Bank List and existing Program Banks being removed will be deleted from a Program Bank List. If more than one Program Bank is added at any given time, the Banks will be added to the end of a Program Bank List in alphabetical order. A Program Bank List will not be reordered as a result of either the addition or removal of a Program Bank. If a Program Bank has been removed from a Program Bank List, that Program Bank will no longer be available to receive Program Deposits. If you have a Program Deposit with the removed Program Bank, Fidelity will transfer your Program Deposit from that Program Bank into the remaining Program Banks on your Account's Program Bank List as if you had opted out of that Program Bank. In the event that the Program Bank that is removed from the Program Bank List is your Primary Core Bank, then the next available Program Bank on your Account's Program Bank List will be designated the Primary Core Bank.

Every Account must be assigned a Program Bank List with at least one available Program Bank. If the removal of a Program Bank combined with your election to opt out of one or more Program Banks results in your Account's Program Bank List having no available Program Banks, then you direct Fidelity to (i) void your opt-out election, (ii) assign as your Account's Primary Core Bank the Program Bank on your Account's Program Bank List following the Program Bank that was removed, and (iii) transfer your Program Deposit from the removed Program Bank into your Account's Primary Core Bank as if you had opted out of the removed Program Bank.

Bank Status Changes

In certain circumstances, a Program Bank that has been added to your Account will appear on your Program Bank List with a designation that indicates its status as "pending activation." A pending Program Bank will not be available to receive Program Deposits until the pending designation is removed (generally thirty [30] days from the date the Program Bank is added to your Account's Program Bank List). However, you may elect to opt out of a pending Program Bank at any time in accordance with the process described above.

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download